Alcoa announces long-term contract for renewable power to support 2024 restart of San Ciprián aluminum smelter

2022-05-19

May 19, 2022 - Alcoa Corporation (NYSE: AA) today announced the signing of a contract for renewable energy to support the planned restart in 2024 of aluminum smelting at the San Ciprián smelter in Spain.

The long-term power purchase agreement is with Greenalia, an independent renewable energy developer and producer. Subject to windfarm permitting processes, the agreement would commence in 2024 and extend to the end of 2033.

Due to exorbitant energy prices, Alcoa announced in December of 2021 a two-year curtailment of aluminum smelting at the site. During the curtailment, Alcoa is working to secure power purchase agreements and make improvements to prepare the smelter for the planned restart to begin in January of 2024.

“This power contract is a very important step for the long-term viability of San Ciprián,” said Álvaro Dorado Baselga, Vice President Global Energy in Alcoa and President of Alcoa in Spain. “We are working to fulfill our commitments to the workers’ representatives, and the support of government in the development of the necessary energy framework remains vital.”

The agreement is expected to provide up to 183 megawatts of the smelter’s baseload power consumption, representing approximately 45 percent of the energy required to meet the smelter’s maximum capacity of 228,000 metric tons per year. The contract’s pricing terms are confidential. Alcoa is continuing to pursue options for the remaining 55 percent of the smelter’s electricity requirements.

While the smelter is curtailed, the casthouse and the San Ciprián alumina refinery continue to operate.